Brazil to cut 2015 fiscal savings goal to 0.15 pct of GDP -sources

Redacción de Reuters

1 MIN. DE LECTURA

BRASILIA, July 22 (Reuters) - The Brazilian government will slash its 2015 primary surplus target to 0.15 percent of gross domestic product from its original 1.1 percent goal, three government official familiar with the decision told Reuters.

The drastic reduction of the target was due to a sharper-than-expected drop in tax revenues as the economy sinks into an expected recession. The new goal will be announced later on Wednesday along with additional spending cuts of up to 15 billion reais ($4.66 billion).

One of the officials, who asked for anonymity to speak freely, said the government also plans to reduce its 2 percent of GDP surplus target for next year. The official said the timing of the announcement was not yet final. ($1 = 3.2217 Brazilian reais) (Reporting by Alonso Soto and Luciana Otoni)